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Tax implications on resale of property

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Mamta Kochar

23 Points Posted on 13 October 2024

I have sold a property held for 20 years at 22 lacs, I beleive I am liable to pay 12.5% long term capital gain tax.

Suppose I invest in a new property and buy residential plot of 22 lacs so I beleive I don't have to pay abovesaid 12.5% . If I sell again new property at 23 lacs within a month will it fall under short term capital gains? Do I just need to pay tax for only 1 lacs ? Please suggest my tax implications

Replies (3)

Quick Summary

This discussion explores the tax implications of selling a property held for over 20 years. The user is seeking clarification on long-term capital gains tax and whether investing the sale proceeds into a new residential plot can exempt them from this tax. They also inquire about the tax treatment if the new property is sold quickly, potentially falling under short-term capital gains, and whether tax is only on the profit or the total sale amount.

sabyasachi mukherjee

Profession

19978 Points Posted on 13 October 2024

Either purchase a new property or a seperate extension to get relief from capital gàns.

Mamta Kochar

23 Points Posted on 13 October 2024

Is my tax liability only for 1 lacs capital gains or total 23 lacs received ?

Aashok Kumar Sharma

Finance/Compliance Consultant

75646 Points Posted on 08 November 2026

Property held 20 years, sold for Rs 22 lakh:
• LTCG: for sales on or after 23 July 2024, a resident individual (property acquired before 23 July 2024) can choose the lower of 12.5% without indexation or 20% with indexation. Compute both.
• If bought before 1 April 2001, use the FMV as on 1 April 2001 (capped at the SDV then) as cost.
• Exemptions: Sec 54 (new residential house within 1 year before or 2 years after, or construction within 3 years), or Sec 54EC bonds (within 6 months, up to Rs 50 lakh).
• Check the stamp duty value: if above Rs 22 lakh by more than 10%, the SDV is the deemed sale consideration (Sec 50C).